working-capitallisted

# Working Capital Management Measures how much cash is trapped in the operating cycle and how much funding is required to run it. ## Metrics * **Net Working Capital** = Current Assets − Current Liabilities. * **Working Capital Ratio** = Current Assets ÷ Current Liabilities (≥ 1.5 conservative for SMEs). * **Cash Conversion Cycle (CCC)** = DIO + DSO − DPO — days cash is tied up from buying stock until cash returns. * **Working Capital Requirement** = CCC (days) × COGS per day — operational funding needs. ## Scope & Safety * **Use for**: planning working-capital loan needs, negotiating supplier payment terms, assessing operational liquidity. * **Do not use for**: long-term investment loan decisions (use capital-budgeting), or total solvency assessment. * A long CCC means cash is absorbed into receivables/inventory — priorities: speed up collections, reasonably extend supplier payables, reduce dead stock. * WCR figures are need estimates; add a 10–20% buffer for seasonality. ## Hybrid Execution Model Pass inputs to `engines/working-capital.js`: `netWorkingCapital`, `workingCapitalRatio`, `cashConversionCycle`, `workingCapitalRequirement`. Wrap in a Trust Envelope (risk MEDIUM; as_of; human review for credit applications). ## Worked Example Input: CA 500 million, CL 250 million; DIO 60 days, DSO 45 days, DPO 30 days; COGS/day 2 million. Output: NWC = **250 million**; Ratio = **2.0**; CCC = 60 + 45 − 30 = **75 days**; Requirement = 75 × 2 million = **150 million**. Interpreta